Nvidia witnessed a staggering seven-fold increase in quarterly net profit, propelled by soaring demand for its chips driving artificial intelligence applications in data centres. The California-based tech giant reported a net profit of $14.9 billion, marking a remarkable surge from the previous year, while its revenue of $26 billion nearly quadrupled compared to the same fiscal quarter last year. Additionally, Nvidia announced a 10-for-one stock split effective June 7, aimed at making share ownership more accessible to investors. In after-market trading, Nvidia shares surged three percent to $977.99.
“The next industrial revolution has begun,” declared Nvidia CEO Jensen Huang, highlighting the company’s pivotal role in powering the shift towards accelerated computing and the emergence of AI-centric data centres. Huang emphasized partnerships with companies and nations to facilitate this transition, envisioning the creation of “AI factories” as a new paradigm for data processing.
Demand for Nvidia’s advanced GPU (graphics processing units), specifically designed for training AI models, remained robust. Huang noted a widening interest in generative AI across diverse sectors, including consumer internet, automotive, healthcare, and national AI initiatives, indicating a broader adoption beyond traditional cloud computing domains.
Emarketer senior analyst Jacob Bourne underscored Nvidia’s resilience in meeting the escalating demands of global AI companies, attributing its continued success to innovative strategies and a robust ecosystem.
Wedbush analyst Ives highlighted the burgeoning interest in consumer-facing AI services offered by tech titans like Apple, Amazon, Meta, Google, and Microsoft, alongside the business and cloud computing sectors driving Nvidia’s substantial growth.
In parallel, Amazon’s cloud computing division AWS announced a significant investment of 15.7 billion euros to expand its data centres in Spain’s Aragon region, reflecting the industry’s ongoing investment in cloud infrastructure globally.
Huang emphasized Nvidia’s pivotal role in shaping the transformation of data centres into “AI generation factories,” fueling innovations such as prompt-generated videos and supporting the rise of sovereign AI initiatives worldwide.
According to Nvidia CFO Colette Kress, sovereign AI infrastructure projects are underway in various countries, including Canada, France, and Japan, further bolstering demand for Nvidia’s chips and reinforcing its position as a leader in AI technology.
As Nvidia continues to innovate and expand its footprint in the AI landscape, the company is poised to maintain its industry leadership and drive the next wave of AI-driven advancements.
